Beach Investment Properties

This post on beach investment properties was written by Marilyn,  our resource for all things shore this summer.

Jeremy Jones, a Realtor with Long and Foster in Avalon, had a Bayfront townhouse for sale on Ocean Drive in Avalon.  MLS # 167701.  The asking price for this property was $1,399,000.  The estimated rental income for this 4 bedroom 4 bathroom Bayfront beauty would be $60,000 for the summer.  This property just went under contract.  When looking for investment properties, it’s important to work with an Agent such as myself who can alert you when a good property hits the market, because they often sell quickly.

If you look at an aerial shot of Stone Harbor and Avalon, NJ, you’ll see the ocean to the east and the bay to the west.  In between the two bodies of water is a dream wrapped in a wish.  Also known as a beach house, vacation getaway or second home, it’s the place you’ll long to be when you’re anywhere else.  How do you make the dream of a vacation home a reality?  It’s all about the numbers.

After photo of my investment property back by the bay on 22nd street in Avalon .  Most properties that are less affordable and sought after for investment properties also need a significant amount of work.  By updating a property you will increase the property value and will be able to ask a higher rental rate.

I purchased an investment property in 2014.  At the time, it was the lowest priced single-family home available in Avalon.  It needed a major renovation so I took out a mortgage and got to work.  My goal for this property was to cover my costs with rentals, but if I wasn’t able to do so, the long term appreciation would surely justify the purchase.  The one guarantee for a rental at the shore is if the house is updated and shows well, the rental rates are higher.

We completely renovated our 22nd street investment property in Avalon.  This once ugly duckling now offers all the comforts people are looking for when they vacation at the shore.

People want to stay in a nice property when they are on vacation, so it’s a wise decision to invest in updates and decor if you are considering an investment property.  My house on 22nd street brings in $2,800 a month in the high season which is more than a property without updates would generate.

Jeremy Jones, a Realtor with Long and Foster in Avalon, has a condo for sale on the very desirable 96th St. in Stone Harbor.  MLS # 167368.  The asking price for this property is $519,000.  The estimated rental income for this 3 bedroom 2 bathroom condo one block from the beach would be $25,000 for the summer.  You can earn additional income by renting off-season to weekend warriors who love the beach in the spring and fall.  This is a perfect opportunity to get your foot in the door at the beach.  The appreciation for condos isn’t as great as a single-family, but the carrying costs can be much lower.

Three bedroom unit currently for sale on 96th street in Stone Harbor for $519,000.

Three bedroom condo currently for sale on 96th street in Stone Harbor for $519,000.  Remember that changes can and should often be made if your considering an investment property. In a competitive rental market like Avalon and Stone Harbor, it is critical to have a property that stands out from the masses.  This property is walking distance to town and one block from the beach which are key elements to consider when purchasing an investment property.

Making the numbers work is no sure thing.  You need patience and the understanding that there may be times when some weeks sit empty.  The other factor to consider is the overall attraction of the town.  Will vacationers remain loyal to Avalon and Stone Harbor or will another beach town compete for tourist dollars?

Ultimately, if your focus is a beach retreat, you can take solace in the fact there is a limited amount of coastline and the allure of the beach is powerful.  As a Realtor servicing the islands of Avalon, Stone Harbor and Sea Isle, I have the information and experience to assist you all along the way.  I fully understand this market and everything involved with investment properties and I have the know-how to guide you successfully through this process.